Transfer of Wealth Analysis
A remarkable thing is happening in America today. We are in the midst of the largest inter-generational transfer of wealth (TOW) ever experienced. According to a 1999 study by Boston College, an estimated $41 trillion of wealth will transfer from the current generation of families and individuals to heirs, charities and foundations between 2000 and 2050. Since World War II, the United States has experienced, and continues to experience, one of the largest economic expansions in our national history. These robust economic times lead to personal and community prosperity and wealth formation.
History of TOW
In 1999, Boston College released a landmark study, Millionaires in the Millennium (http://www.bc.edu/research/cwp/meta-elements/pdf/m_m.pdf). This study sparked a great national conversation around the magnitude and implications of this inter-generational wealth transfer trend. Motivated by this study, the Nebraska Community Foundation (NCF) asked the RUPRI Center for Rural Entrepreneurship (RUPRI) to estimate TOW values for Nebraska and its 93 counties (mostly rural). In 2002, Wealth in Nebraska was released jointly by NCF and RUPRI. It sparked an expansive conversation in rural communities across Nebraska and eventually nationally. To date, RUPRI has completed or advised TOW studies in Nebraska, Wyoming, South Dakota, Louisiana, Arizona (led by Northern Arizona University), Iowa (led by Iowa State University), Wisconsin, Montana and Indiana. RUPRI studies are currently in progress in Ohio, Michigan, Illinois, New York, and Pennsylvania.
Why is this Important?
In a February 2007 speech, Bob Sutton, President of the South Dakota Community Foundation, noted that the TOW analysis has been instrumental in doubling community endowments in South Dakota. By providing scenarios, or stories, of what is happening associated with the inter-generational transfer of wealth in America, the TOW analysis provides the basis for community, regional and statewide conversations that can, and are, resulting in decisions to pursue endowment building for long-term and sustainable community development and enhancement.
To read how the TOW analysis was used in South Wood County, Wisconsin, click on the link below:
Life after Globalization: Rural Region Counters Downturn with Entrepreneurship and Community Development
To read about TOW in Valley County, Nebraska, click on the link below:
HomeTown Competitiveness: A Blueprint for Community Builders
For More Information
In addition to the stories from Nebraska and Wisconsin, we have also included a link below to our TOW studies from Indiana, San Diego, and Western Kentucky for your review and consideration. The RUPRI Center is available to conduct this analysis for other states, regions and even individual communities. For more information, contact Don Macke of the RUPRI Center for Rural Entrepreneurship by phone at 402.323.7339 or by email at don@e2mail.org .
To view the RUPRI Center for Rural Entrepreneurship TOW studies, click on the links below.
Wealth in Indiana: Final Technical Report, September 2006
Our Region's Future Funding: The Transfer of Wealth in San Diego County Over the Next 25 Years
Western Kentucky's Future of Giving: Wealth Transfer Study
Questions and Additional Information
Don Macke + RUPRI Center for Rural Entrepreneurship
Voice 402.323.7339 + Email don@e2mail.org